The second most important flaw is that computers can fool the human visual system into seeing color with only 3 signals, but our noses can distinguish hundreds of individual chemicals.
But even if that was somehow overcome, what is the use case? The company had some demo of a person buying perfume online, sampling each one using a webpage. But if I had a box attached to my computer that could generate the smell of perfume with any accuracy, why would I ever buy perfume again? Just get the box to exude the liquid it was using to make the smell in the first place.
Because it would be cheaper, in greater volume, and easier to apply to your person than the smells generated by the device.
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What a waste. All this potential, and the best application was websites?
I've been thinking about an idea like this over past few years, but in my view, the applications would be immersive 4D movies - adding a smell dimension to the experience that already features 3D images, sound, and tactile effects like blowing wind, water dripping on you, etc. - and immersive video games.
Anyway, thanks for posting. Until today I didn't know anyone was seriously working on something like that.
Getting it in a reasonable form factor and some practical issues (stinking up the house) seem like roadblocks, but I wouldn't be surprised to see something like this come back around, focused on gaming.
I asked them about the "hundreds of chemicals" and they claimed 10 or 12 were enough for most scents. (Compare display gamut to full range of visible light.)